Lionsgate to spin off studio business in $4.6 billion SPAC deal

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Lionsgate to spin off studio business in $4.6 billion SPAC deal

Lionsgate will spin off its studio unit in a blank-check deal that values the business behind the "Hunger Games" franchise at about $4.6 billion including debt.

www.cnbc.com

Lionsgate will spin off its studio unit in a blank-check deal that values the business behind the “Hunger Games” and “John Wick” movie franchises at about $4.6 billion including debt, the company said on Friday.

The studio business will merge with Screaming Eagle Acquisition Corp, a special purpose-acquisition company (SPAC), to create a new public firm for Lionsgate’s film and television assets that includes about 18,000 titles.




The move, part of the company’s plan to separate its studio unit from the Starz cable and streaming division, is expected to deliver about $350 million in gross proceeds to Lionsgate.

That includes $175 million from a private investment in public equity and the remaining from the SPAC’s trust account.

The studio unit has enjoyed box-office success this year, thanks to hits like Keanu Reeves’ “John Wick: Chapter Four”, which grossed more than $400 million. In the last reported quarter, the unit’s revenue rose 21%, to $790 million.